BILL NUMBER: SB 1828	CHAPTERED  09/26/00

	CHAPTER   681
	FILED WITH SECRETARY OF STATE   SEPTEMBER 26, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 24, 2000
	PASSED THE SENATE   AUGUST 25, 2000
	PASSED THE ASSEMBLY   AUGUST 21, 2000
	AMENDED IN ASSEMBLY   AUGUST 11, 2000
	AMENDED IN ASSEMBLY   JULY 6, 2000
	AMENDED IN ASSEMBLY   JUNE 6, 2000
	AMENDED IN SENATE   APRIL 6, 2000

INTRODUCED BY   Senator Speier

                        FEBRUARY 24, 2000

   An act to add Sections 2242.1 and 4067 to the Business and
Professions Code, relating to medicine, and making an appropriation
therefor.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1828, Speier.  Dangerous drugs and devices.
   The Medical Practice Act provides that it is unprofessional
conduct for a physician and surgeon to prescribe, dispense, or
furnish dangerous drugs or dangerous devices, as defined, without a
good faith prior examination and medical indication therefor.  The
Pharmacy Law provides for the regulation and licensing of
pharmacists, and regulates the furnishing and dispensing of dangerous
drugs or dangerous devices.
   This bill would prohibit any person or entity from prescribing,
dispensing, or furnishing dangerous drugs or dangerous devices on the
Internet for delivery to any person in this state, except as
specified.  This bill would also prohibit, pursuant to the Pharmacy
Law, any person or entity from dispensing or furnishing, or causing
the dispensing or furnishing of, dangerous drugs or dangerous devices
on the Internet for delivery to any person in this state without a
prescription issued pursuant to a good faith prior examination under
specified conditions.
   This bill would permit either a fine of up to $25,000 per
occurrence pursuant to a citation issued by the board or a civil
penalty of $25,000 per occurrence to be enforced by the Attorney
General.  The bill would require the fines and civil penalties to be
deposited into the Contingent Fund of the Medical Board of California
or the Pharmacy Board Contingent Fund.  Because these contingent
funds are continuously appropriated funds, the bill would make an
appropriation.  For notifications made on and after January 1, 2002,
this bill would provide for the Franchise Tax Board to collect the
fine or the civil penalties from tax refunds or lottery winnings
otherwise payable to violators.  This bill would also require
violations by nonresidents to be reported to the appropriate
professional licensing authority.
   Because a violation of these provisions would also be a crime,
this bill would impose a state-mandated local program by creating a
new crime.
  The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Appropriation:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 2242.1 is added to the Business and Professions
Code, to read:
   2242.1.  (a) No person or entity may prescribe, dispense, or
furnish, or cause to be prescribed, dispensed, or furnished,
dangerous drugs or dangerous devices, as defined in Section 4022, on
the Internet for delivery to any person in this state, without a good
faith prior examination and medical indication therefor, except as
authorized by Section 2242.
   (b) Notwithstanding any other provision of law, a violation of
this section may subject the person or entity that has committed the
violation to either a fine of up to twenty-five thousand dollars
($25,000) per occurrence pursuant to a citation issued by the board
or a civil penalty of twenty-five thousand dollars ($25,000) per
occurrence.
   (c) The Attorney General may bring an action to enforce this
section and to collect the fines or civil penalties authorized by
subdivision (b).
   (d) For notifications made on and after January 1, 2002, the
Franchise Tax Board, upon notification by the Attorney General or the
board of a final judgment in an action brought under this section,
shall subtract the amount of the fine or awarded civil penalties from
any tax refunds or lottery winnings due to the person who is a
defendant in the action using the offset authority under Section
12419.5 of the Government Code, as delegated by the Controller, and
the processes as established by the Franchise Tax Board for this
purpose.  That amount shall be forwarded to the board for deposit in
the Contingent Fund of the Medical Board of California.
   (e) If the person or entity that is the subject of an action
brought pursuant to this section is not a resident of this state, a
violation of this section shall, if applicable, be reported to the
person's or entity's appropriate professional licensing authority.
   (f) Nothing in this section shall prohibit the board from
commencing a disciplinary action against a physician and surgeon
pursuant to Section 2242.
  SEC. 2.  Section 4067 is added to the Business and Professions
Code, to read:
   4067.  (a) No person or entity shall dispense or furnish, or cause
to be dispensed or furnished, dangerous drugs or dangerous devices,
as defined in Section 4022, on the Internet for delivery to any
person in this state without a prescription issued pursuant to a good
faith prior examination if the person or entity either knew or
reasonably should have known that the prescription was not issued
pursuant to a good faith prior examination, or if the person or
entity did not act in accordance with Section 1761 of Title 16 of the
California Code of Regulations.
   (b) Notwithstanding any other provision of law, a violation of
this section may subject the person or entity that has committed the
violation to either a fine of up to twenty-five thousand dollars
($25,000) per occurrence pursuant to a citation issued by the board
or a civil penalty of twenty-five thousand dollars ($25,000) per
occurrence.
   (c) The Attorney General may bring an action to enforce this
section and to collect the fines or civil penalties authorized by
subdivision (b).
   (d) For notifications made on and after January 1, 2002, the
Franchise Tax Board, upon notification by the Attorney General or the
board of a final judgment in an action brought under this section,
shall subtract the amount of the fine or awarded civil penalties from
any tax refunds or lottery winnings due to the person who is a
defendant in the action using the offset authority under Section
12419.5 of the Government Code, as delegated by the Controller, and
the processes as established by the Franchise Tax Board for this
purpose.  That amount shall be forwarded to the board for deposit in
the Pharmacy Board Contingent Fund.
   (e) Nothing in this section shall be construed to permit the
unlicensed practice of pharmacy, or to limit the authority of the
board to enforce any other provision of this chapter.
  SEC. 3.  No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because the
only costs that may be incurred by a local agency or school district
will be incurred because this act creates a new crime or infraction,
eliminates a crime or infraction, or changes the penalty for a crime
or infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIIIB of the California Constitution.
